Just a friendly reminder .... there are all types of realtors. Just like there are all types of Lawyers. We aren't all bad *wink*
Here are some points I see for those who do not use a realtor.
1) You already have the contract stacked against you. Why go into a negotiation outgunned with a contract completely in the favour of the builder? The builder does not owe you any fiduciary duties. You are their customer and that is all.
2) Looking for an investment? A realtor should know the market place and though we do not have a crystal ball if you are buying an investment condo future rents and actual carrying cost of the condo must be taken into consideration. Don't get fooled into thinking the "projected" maintenance fees by the builder are realistic after 1 year of registration.
3) Experienced realtors will know builders and their past projects. For example: There is a builder who kept the top level of the project, and the parking space which was rented out to the owners...none of the parking spaces were available for purchase. A couple of years later the condo was in litigation with the builder. Some issues such as why the parking company wasn't responsible for maintenance of the parking area underground came up and a bunch more that divert from this thread
The builders past speaks volumes of their ability to build future projects. This also includes what gets promised versus whats gets built. It is never 100%. Does the builder have a history of not being able to fulfill its design concepts?
4) The general public does not get exposed to platinum or other discounted pricing.
5) Commissions are never easy. I have never had a client call me up and say I want a condo and I sell them the first one that comes across my desk. There are specific needs for each individual and even if I am offered 5% commission for a condo if my client doesn't like it there isn't much more to discuss.
6) I spend a significant amount of time showing rentals to tenants. Doing so has given me insightful rental market information that few can learn from browsing MLS. As a home owner your priorities are a little different from a tenant so when you buy an investment condo this background information can be quite useful to answer questions such as: Is a den required anymore? Does parking make a difference? What should I upgrade? Does floor level effect rental value? How will condo registration effect the rental value when so many units go up for lease at the same time? Is the location ideal (thought the price is right)? To that last question consider the developments on Regent Park. It is an upcoming area but it's location is stigmatized. I have had a client have some difficult times getting tenants in one of the buildings here due to this fact alone. I met this client after the building was constructed. As an investment it is sound but the trick to purchasing this condo from plan was to know this in advance prior to spending more than you would expect in return that is reasonable in the short term (or weigh in for longer term objectives).
7) Going into a show room can dazzle the brains right out of a buyer! It's hard to keep focused on your objectives when you surround by other buyers and the builder's sales people. A good realtor focuses on your needs (including financial ones). The final sale price for a unit never includes all the costs. Emotions can run wild when the disco...I mean show room opens up
8) I would not think for a minute that the commissions are the only contributing factor to pricing a unit. The builder uses realtors to focus attention on the project. However their objectives are to sell to people who do not use a realtor. You would not see a project discounted because realtors were not being utilized. The market determines the price. If consumers didn't buy everything in sight and used their buying power as a collective builders wouldn't have such an easy time.
Please do not paint us all with the same brush. Pick a realtor with the same effort you pick a house, or another service provider.
I hope this helps!!
